Provision for (Benefit from) Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The following are the pre-tax book income for the years ended December 31, 2025, 2024 and 2023:


	Years Ended December 31,
	2025		2024		2023
	(in thousands)
Pre-tax book income:
Domestic	$	32,522	$	14,329	$	1,190
Foreign		—		—		—
Total	$	32,522	$	14,329	$	1,190

Schedule of Provision for Income Taxes

The provision for (benefit from) income taxes for the years ended December 31, 2025, 2024 and 2023 consists of the following:


	Years Ended December 31,
	2025		2024			2023
	(in thousands)
Current income taxes:
Federal	$	673	$	10,977		$	7,752
State		3,967		2,161			(214	)
Foreign		—		—			—
Total current	$	4,640	$	13,138		$	7,538
Deferred income taxes:
Federal		9,707		(10,087	)		(9,724	)
State		809		(1,423	)		(983	)
Foreign		—		—			—
Total deferred	$	10,516	$	(11,510	)	$	(10,707	)
Provision for (benefit from) income taxes	$	15,156	$	1,628		$	(3,169	)

Schedule of Reconciliation of Effective Tax Rate and Federal Statutory Tax Rate After the Adoption of ASU 2023-09

A reconciliation of the Company’s effective tax rate and federal statutory tax rate after the adoption of ASU 2023-09 is summarized as follows. See Note 2. Summary Significant Accounting Policies - Recently Issued Accounting Pronouncements Adopted for additional details on the adoption of ASU 2023-09.


	Year Ended December 31, 2025
	(in thousands, except percent)
Income taxes (benefit) at statutory federal rate	$	6,830		21.0	%
State and local taxes, net of federal income tax effect1		2,983		9.2	%
Tax credits
R&D credit		(792	)	(2.4	%)
Changes in valuation allowance		—		0.0	%
Nontaxable or nondeductible items
Other		279		0.9	%
Section 162(m) officer's compensation		1,052		3.2	%
Transaction costs		793		2.4	%
Penalties and Interest		1,464		4.5	%
Changes in unrecognized tax benefits		809		2.5	%
Other
Change in the tax status of an entity		1,401		4.3	%
Other		337		1.0	%
Total effective rate	$	15,156		46.5	%

The state that contributes to the majority (greater than 50%) of the tax effect in this category is California for the years ended December 31, 2025.

A reconciliation of the Company’s effective tax rate and federal statutory tax rate as previously disclosed for the year ended December 31, 2024 and 2023 is summarized as follows:


	Years Ended December 31,
	2024			2023
	(in thousands, except percent)
Federal income taxes		21.0	%		21.0	%
State income taxes, net of federal benefit		0.7	%		(3.0	%)
Rate differential		(3.4	%)		(2.3	%)
Permanent and other differences		1.0	%		9.0	%
Profits Interest		1.3	%		20.1	%
Research and development tax credits		(5.5	%)		(79.2	%)
Uncertain tax positions		9.8	%		11.2	%
Income from passthrough entities		(15.9	%)		(87.9	%)
Return to provision2		(1.8	%)		(155.0	%)
Interest and penalties		4.3	%		0.0	%
Other		0.0	%		0.0	%
Effective Tax Rate		11.5	%		(266.1	%)

The return to provision line item included in the rate reconciliation relates to changes in estimates related to transfer pricing, net costs in excess of billings, research and development tax credits, other deferred tax and income tax payable true-ups

Schedule of Cash Income Taxes Paid

The amounts of cash taxes paid by the Company for the year ended December 31, 2025 are as follows:


	Year Ended December 31,
	2025
	(in thousands)
Federal income taxes paid, net of refunds received	$	15,954
State income taxes paid, net of refunds received
California		900
Other		66
Foreign income taxes paid, net of refunds received		—
Total income taxes paid, net of refunds received	$	16,920

Summary of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are summarized as follows:


	Years Ended December 31,
	2025			2024
	(in thousands)
Deferred tax assets:
Accrued Compensation	$	694		$	673
State income tax		1,136			475
Interest expense limitation		13,208			13,441
Capitalized Research		100			8,209
Lease Liability		22,673			20,703
Other		759			648
Total deferred tax assets	$	38,570		$	44,149
Less: Valuation allowance		—			—
Total deferred tax assets, net of valuation allowance	$	38,570		$	44,149

Deferred tax liabilities
ROU Asset	$	(18,571	)	$	(17,647	)
Percentage of Completion Contracts		(915	)		(148	)
Fixed Assets		(14,540	)		(8,343	)
Intangibles		(52,375	)		(43,381	)
Total deferred tax liabilities	$	(86,401	)	$	(69,519	)
Net deferred tax liabilities	$	(47,831	)	$	(25,370	)

Summary of Tax Credit Carryforwards

Tax credit carryforwards as of December 31, 2025 are as follows:


	Amount		Expiration Years
	(in thousands)
Research and development tax credits, federal		176	2045
Research and development tax credits, state		8	Indefinite

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits is as follows:


	Years Ended December 31,
	2025			2024		2023
	(in thousands)
Beginning balance of unrecognized tax benefits	$	2,015		$	579	$	466
Gross increases (decreases) based on tax positions related to current year		1,845			801		283
Gross increases (decreases) based on tax positions related to prior years		157			635		(170	)
Expiration of statute of limitations		(60	)		—		—
Ending balance of unrecognized tax benefits	$	3,957		$	2,015	$	579